Tomra Systems plunges 10% after first-quarter results come in below forecasts

Published 07/05/2025, 09:14
© Reuters.

Investing.com -- Shares in Norway’s Tomra Systems (OL:TOM) plummeted more than 10% in Oslo on Wednesday after the company reported first-quarter results that fell short of analyst expectations.

The provider of recycling and waste sorting services saw its net sales rise 5% year-over-year to €306 million in Q1, but that number was 2% short of the company-compiled consensus, according to brokerage Jefferies. 

Adjusted EBITA jumped 73% from a year earlier to €26 million but missed forecasts by 21%.

Tomra’s Collection segment saw a 2% year-over-year sales decline, driven by weaker volumes in new markets and a 14% drop in European sales outside Northern Europe.

In Recycling, a less favorable product mix reduced the gross margin to 45%, contributing to a negative EBITA margin of -1%, as operating costs held steady.

Meanwhile, the Food segment delivered 16% sales growth and improved its EBITA margin to 5%, helped by restructuring efforts. The order backlog in Recycling fell 2%, while the Food segment’s backlog rose 6% to a three-year high.

If today’s losses persist, Tomra shares are on track for their worst single-day drop since October 2023.

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